HODLCoin: Pyramid Scheme Or Not?
For an industry that seems innovative, blockchain technology is set to introduce the first Proof of Work coin with the characteristics of a Pyramid scheme. Although almost similar to Bitcoin, HODLCoin is built on Ethereum and promises to prevent any flaws that we witness in the typical Ponzi projects by use of smart contracts for safety and security.
How HODL Coin Works
The HODL project plans to rewards its investors through two methods they intend to enforce. One of them is the use of dividends. Whenever an investor buys HODL 10% of the ETH will go into rewarding the token holders. That means whoever holds a large volume of HODL will ultimately have a much more significant dividend amount.
On the other hand, there is the use of pyramid technology which rewards user according to by offering discounts on the buying and selling price. Any profits earned through this go into a lock-in which nobody can touch but the user. Each dividend from the pyramid technology will reward investor on the number of coins they possess.
Getting HODL Coins
Apparently, there are only two ways to access HODLCoin, which is through mining or trading. If you plan on drilling, the platform can accommodate mining through the Minecraft servers. However, you will need the browser extension, MetaMask to facilitate the mining process within your browser.
For those planning to trade and get HODLCoin, the platform currently accommodate Ether as the form of currency. You create an Ethereum wallet and a HODL wallet where you receive the coins. Later on, you buy ETH from any reliable exchange and deposit the given address on the platform. Once you send the Ether, you will receive your HODLCoin in your wallet. Moreover, you can exchange your ETH for HODLCoin at any exchange site you use. A side note is always to move your coins into a single wallet.
Is HODL Coin Safe?
No. As straightforward as I can be, there are risks involved when it comes to trading HODLCoin. For starter, exchanges have a notorious habit of having feeble security measures. There numerous occasion where an exchange collapses due to hacks, which pretty much mean losses to any coin investors. In most situations, the coins are lost forever, never to be found. So it's not a wise idea to keep your HODLCoin in exchange sites you know very little about their security. Already HODLCoin users are facing a similar situation.
Additionally, the development team behind HODLCoin are still shadowy figures since there isn’t much we know about them. The link to their profiles redirects to a somewhat dubious ad video on YouTube. For any smart investor, this is a red flag since it’s an indication that the coin may crash anytime and people will lose their investment.
HODL Coin Conclusion
There isn’t anything exciting I would recommend from HODLCoin. First off, the website is poorly done with several links to valuable information not working. Moreover, the project looks more like a practical joke or an investment scam. All-in-all, considering the market volatility, it's going to be hard to have a possible profit from HODL. That is just a guess and pretty much a gamble if you decide to invest. The bottom line is that trading or investing on HODLCoin is a high-risk activity that can lead to losses.